Murray Energy announced that due to the re-election of Barack Obama to President the company will now need to lay-off more than 160 workers in the states of Utah, Illinois, and West Virginia. The company stated that it was being “forced” to do this due to increased regulations from the EPA and a possible carbon tax. The company CEO, Robert Murray, also suggested that due to these issues the coal industry could basically no longer exist by the year 2030. While the article continues to explain that Obama supports clean coal, it also states that domestic use of coal dropped about 15% in 2011. Most of the rules in place have been there since the implementation of the Clean Air Act, although Obama has had some of his own to add as well.
This story is relevant to our course materials due to several factors. Recognizing opportunities and threats that affect business and the concerns for protecting the stockholders in a company are the two factors that I will focus on for this paper. We have been studying how management needs to do a SWOT analysis to help determine what their strengths and weaknesses, opportunities and threats may be. Management also needs to take the information obtained from the SWOT and determine what changes, if any, need to be put into place to keep the company healthy. We have also had direct discussion on who is a stakeholder in a company. The stakeholders are not just the management team and owners of the company. They are also the employees, vendors, customers, and the community. When a major decision is made regarding the overall well-being of the company – especially one that involves so many to be laid-off – it is very difficult to make and keep all of the stakeholders happy and content.
The CEO is taking a situation that he had no control over and trying to make the best of it for the interests of his shareholders. While no company wants to lay-off employees, sometimes there is... [continues]
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